JustKitchen signs letter of agreement for the purchase of a 46,000 square foot Mega Spoke facility and the acquisition of the WeChef specialty kitchen

TSXV: JK OTCQB: JKHCF FRA: 68Z

The Mega Spoke will allow JustKitchen to prepare foods from up to 40 menus via the equivalent of Eight ghost kitchens, while the WeChef Kitchen is subdivided into six areas as Specialized ghost cuisine for premium food brands and complex delivery menus only

VANCOUVER, BC, January 4, 2022 / CNW / – Just Kitchen Holdings Corp. (“JustKitchen” or the “Company”) (TSXV: JK) (OTCQB: JKHCF) (FRA: 68Z), a ghost kitchen operator specializing in developing delivery-only food brands, is pleased to announce that it has signed a letter of understanding to purchase a 100% stake in a commercial kitchen facility of 46,000 square feet (the “Mega Ray“) in Taipei, Taiwan. The total consideration for the Mega Spoke has been agreed to be $ 1.9 million Canadian dollars, payable heretofore in a combination of cash and common shares of the Company. The Mega Spoke will allow JustKitchen to prepare food from up to 40 different menus, with the equivalent capacity of eight ghost kitchen slots within a single facility and with the ability to support all company operations through Taiwan.

The food preparation and storage complex comes to the Company with a significant amount of commercial kitchen equipment. In addition, the Mega Spoke has a technological system (the “Technology stack“) which can give JustKitchen the possibility of fully integrating food ordering and receiving functions into its unique star-shaped operating model in Taiwan. The technical stack will function to be integrated by management into the company’s proprietary JKOS platform as well as its enterprise resource planning, accounting and logistics systems and those of its third-party delivery service providers. The Mega Spoke also has a complete transport management system for a fleet of ten delivery trucks that JustKitchen will use to internalize logistics between its hub and spoke locations.

The Company is also pleased to announce that it has recently acquired WeChef, which is primarily a 2,900 square foot commercial kitchen facility (the “WeChef Kitchen“) located in the center of the very dense Da’an district of Taipei which is identified as one of the highest commercial delivery areas of Taiwan. The WeChef kitchen is subdivided into six fully functional kitchens with the ability to cater for a wide range of cooking types. It should be used by JustKitchen as a specialty ghost kitchen for high end food brands and more complex than average delivery menus only. Each of the six subdivided kitchens is designed to focus on one type of cooking method, such as frying fish and chips or chicken, or the delicate preparation of the various menus of the Michelin-starred partner food brands.

The WeChef kitchen will expand JustKitchen’s ability to secure enterprise-level brands that require larger spaces due to high demand for their food products. Its dedicated kitchens can facilitate the execution of menus from international and national partners, similar in concept to a virtual dining room but also with collection kiosks. As a result, the WeChef Kitchen is only meant to facilitate a high volume of walk-in orders and food pick-up due to its location in a high-traffic pedestrian area.

“The acquisition of the 46,000 square foot Mega Spoke is set to be a game-changer for JustKitchen’s hub-and-spoke model of operations in Taiwan. This facility will not only increase our ability to handle a higher volume of food-only delivered orders, but it will also increase the company’s research and development capabilities for new food and menu concepts, as well as our continued need to train new employees and desire to incubate talented chefs, ”said Jason chen, co-founder and CEO of JustKitchen. “The addition of WeChef’s specialty kitchen in such a busy location allows us to expand our service offering to now include walk-in service, which is a first for JustKitchen. These transactions are a prime example of how JustKitchen’s asset base and service offering continue to grow stronger and add value to the organization for its customers, shareholders and other stakeholders, ”added M.chen.

ABOUT JUSTKITCHEN

JustKitchen is primarily a ghost kitchen operator specializing in the development and marketing of exclusive and franchise delivery-only food brands to customers. The Company currently operates in Taiwan and Hong Kong with plans to expand its operations to other Asian countries. JustKitchen uniquely utilizes a star-shaped operating model, which includes advanced food preparation in large center kitchens and final meal preparation in smaller star-shaped kitchens located in more densely populated areas. The Company combines this operating model with online and mobile app-based food orders made by third-party delivery companies, in order to minimize capital investments and operating expenses and reach more customers in underserved markets. The company’s other business, JustMarket, is an e-commerce grocery delivery platform that allows customers to purchase groceries for delivery or add selected groceries to ordered meals. via JustKitchen.

For more information on the Company, please visit investors.justkitchen.com. The final prospectus, financial statements and MD&A of JustKitchen, among other documents, are all available on the Company’s profile page on SEDAR at www.sedar.com.

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of TSXV) accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING STATEMENTS

This press release contains certain “forward-looking statements” within the meaning of such statements under applicable securities laws. Forward-looking statements are often characterized by words such as “anticipate”, “plan”, “continue”, “expect”, “plan”, “intend”, “believe”, “anticipate”, “Estimate”, “power”, “will”, “potential”, “proposed”, “positioned” and other similar words, or statements that certain events or conditions “may” or “will” occur, including including, but not limited to, the Company’s comments regarding the Mega Spoke allowing JustKitchen to prepare dishes from a maximum of 40 menus via the equivalent of eight Ghost Kitchens and with the capacity to support all of the company’s operations through Taiwan; the Mega Spoke technological system giving JustKitchen the possibility of fully integrating the functions of ordering and receiving food into its unique star-shaped operating model in Taiwan; management’s integration of Tech Stack into the Company’s proprietary JKOS platform as well as into its enterprise resource planning, accounting and logistics systems and those of its third-party delivery service providers; Mega Spoke’s complete transport management system for a fleet of ten delivery trucks that JustKitchen will use to internalize logistics between its hub and spoke locations; the WeChef’s Kitchen ability to cater for a wide range of types of cuisine; waiting for the WeChef Kitchen be used by JustKitchen as a specialty ghost kitchen for premium food brands and more complex than average delivery menus; the WeChef’s Kitchen expanding JustKitchen’s ability to secure enterprise-level brands that require larger spaces due to high demand for their food products; the unique wait for the WeChef Kitchen facilitate a large volume of walk-in orders and food pick-up due to its location in a high-traffic pedestrian area; the acquisition of the 46,000 square foot Mega Spoke is a game-changer for JustKitchen’s hub-and-spoke model of operations in Taiwan; and the facility bolstering JustKitchen’s ability to process a higher volume of delivery-only food orders and to elevate the company’s research and development capabilities for new food and menu concepts, as well as its continued need to train new employees and his desire to incubate talented chefs. These statements are only predictions. Various assumptions have been used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this press release. Forward-looking statements are based on the opinions and estimates of management as of the date the statements are made and are subject to various risks, including the risk factors identified in the Company’s prospectus dated March 26, 2021, and uncertainties and other factors that could cause actual events or results to differ materially from those projected in forward-looking statements. The Company has no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. .

THE SOURCE Just Kitchen Holdings Corp.

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